Two large insurers are rolling out new guarantee options for annuity holders.
John Hancock Annuities, Boston, a unit of Manulife Financial Corp., Toronto, has introduced the Income Plus For Life optional withdrawal benefit rider.
That rider, available with Hancock Venture Variable Annuity contracts, can guarantee payment of a lifetime income stream for consumers as young as 59.5.
The initial annual income is 5% of the initial purchase payment. The amount can increase for investors who wait at least 1 year to take withdrawals, and it is guaranteed to double for clients over age 60 who wait at least 10 years to take withdrawals and for younger clients who wait until they are 70 to start taking withdrawals.
For a client age 60, the rider can provide guaranteed lifetime income of 10% of the initial purchase payment starting at age 70, Hancock says.
The annual fee for the rider can range from 0.6% of assets to a maximum of 1.2% of assets, Hancock says.
A Hancock sister company, John Hancock Life Insurance Company (U.S.A.), Bloomfield Hills, Mich., is responsible for backing the product guarantees.
Another carrier, ING Fixed Annuities, Des Moines, Iowa, has introduced the ING IncomeProtector Withdrawal Benefit rider.
That rider can protect a consumer’s ability to withdraw cash from several different equity-indexed annuity contracts, including the ING Secure Opportunities Plus, ING Secure Index Five, ING Secure Index Seven, ING Selectra Multi-Strategy Annuity and ING Secure Index Outlook contracts.
The rider provides an annualized 1.5% increase in the guaranteed withdrawal base, according to ING Fixed Annuities, a unit of ING Groep N.V., Amsterdam.
The annual fee for the rider is 0.35% of contract assets, and the fees will be refunded when the annuitant dies if the annuitant has taken no withdrawals from the annuity, ING says.
ING USA Annuity and Life Insurance Company is responsible for backing the rider guarantees.